Channel 4 has blamed a fall in advertising revenues and higher spending on digital TV for a 70 per cent slump in profits to £14.5m during 2006.
The broadcaster added that the figures showed it needed extra state funding, or it would have to screen more commercial shows at the expense of public service content.
Tough choices
Channel 4's earnings report also revealed that the group increased its overall spending on programming by 6 per cent to £608m, up from £99m in 2005, with £125m of the total spent on annual entertainment shows like Big Brother.
However, the drop in profits forced bosses at the broadcaster to warn that without more government help the group would face some tough choices regarding its programme output.
"We may be faced with a stark choice," said chairman Luke Johnson.
"Either we will have to reduce our output of public service programming and focus more of our schedule on commercial programmes, or see Channel 4's finances continue to deteriorate," he warned.
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